If an apartment complex will need painting in 3 1/2 years and the job will cost $25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 6% interest compounded semiannually.

Here, FV = Future Value = $25000 PV = Present Value = ? r = rate of interest = 6%,since this is semiannually, here r = 6/2 = 3 n= no. of term = 3 1/2 years compounded semiannually = 7